In survey, SSIs cry foul over CII’s negligence

Rajeev Jayaswal

New Delhi, Jan 1: A Boston Consulting Group (BCG) and Confederation of Indian Industry (CII) joint study has found brewing discontent among 80 per cent of its members, comprising small and medium enterprises (SMEs), as they feel ignored.

“CII needs to clearly define role towards SMEs,” the study conducted by BCG, which was appointed to restructure and reorganise CII, has suggested.

The study has identified seven core areas for restructuring which include SMEs, services, public policy and advocacy, CII brand, planning process, organisational issues and international role.

The study has recommended CII to evolve different services and innovative delivery mechanisms for SMEs.

“Although 80 per cent of CII membership is SMEs, there is a feeling that CII is not doing enough for them,” the study said, adding that given the changes in the economy, SMEs need help to sustain and grow.

The study recommended CII to set up regional small industry council along the lines of the National Small Industry Council and appoint regional SME advisors.

In order to serve SMEs more effectively, the study suggested to create a new research cell and think-tank involving government agencies as well as Small Industies Development Bank of India (Sidbi).
Key suggestions include knowledge creation and dissemination through research and studies, initiating an e-learning programme, creation of local advisory group (LAG) to resolve individual problems, forging partnership between large and small industries and strengthening websites and web-based help lines.

Reflecting on the needs of SME members, the study suggested that companies with a turnover of up to Rs 10 crore should be serviced by the SME division. “These are about 2,030 in number constituting approximately 50 per cent of the total membership,” it said.

CII is already in the process of appointing SME advisors across the country with a focus on addressing individual problems.

In a recent meeting of CII’s National Council for Small Industry, the members acknowledged that the domestic SSIs are facing recession due to the Chinese goods import. “There is a need to be cost effective and to have mass production,” the council said, adding that the industry need to invest in research & development and new technology to remain competitive.

In order to boost SMEs, the council has urged the government to increase the limit for excise exemption to Rs 10 crore from Rs 5 crore and introduce labour reforms.

SMEs is now in the focus of CII after it has strengthen its global reach by launching CII International and creating a separate MNC council, a CII source said, adding that survival of SMEs is important for the country’s economy.